Seaport Global Securities Upgrades PolyOne (POL) to Accumulate

Seaport Global Securities upgraded PolyOne (NYSE: POL) from Neutral to Accumulate with a price target of $37.00.

Analyst Michael Harrison commented, "We believe it's time to come off the sidelines on POL, and thus are upgrading to Accumulate from Neutral. We are confident that Q1 results should show positive YoY volume growth against a weak prior-year comp, and that volume growth should accelerate over the coming quarters given POL's strategic efforts. These efforts include sales force additions to drive continued growth in high-value-added specialty product lines, cross-selling of recent acquisitions including Kraton TPE products, and operational improvement in the struggling DSS segment. While YoY margin improvement is likely on hold through much of 2016, we believe margin expansion should resume in 2017, setting up an attractive earnings growth scenario. We are modestly increasing our estimates to reflect accelerating operating momentum, and we are increasing our price target from $29 to $37. The new target represents 8.6x our FTM EBITDA estimate, compared to current valuation of 8.4x and a historical range of ~6x-9.5x. We note improvement in the DSS business and traction from new sales force additions are a critical component of our thesis."

For an analyst ratings summary and ratings history on PolyOne click here. For more ratings news on PolyOne click here.

Shares of PolyOne closed at $31.50 yesterday.

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